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LOVE

LovesacNasdaqGM:LOVE Stock Report

Last Price

US$52.61

Market Cap

US$795.6m

7D

-6.0%

1Y

7.6%

Updated

16 Jan, 2022

Data

Company Financials +
LOVE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance3/6
Financial Health6/6
Dividends0/6

LOVE Stock Overview

The Lovesac Company designs, manufactures, and sells furniture.

Lovesac Competitors

La-Z-Boy

NYSE:LZB

US$1.6b

Ethan Allen Interiors

NYSE:ETD

US$666.1m

Hooker Furnishings

NasdaqGS:HOFT

US$274.6m

Flexsteel Industries

NasdaqGS:FLXS

US$180.9m

Price History & Performance

Summary of all time highs, changes and price drops for Lovesac
Historical stock prices
Current Share PriceUS$52.61
52 Week HighUS$95.51
52 Week LowUS$47.72
Beta2.29
1 Month Change-18.24%
3 Month Change-26.89%
1 Year Change7.63%
3 Year Change122.83%
5 Year Changen/a
Change since IPO119.30%

Recent News & Updates

Shareholder Returns

LOVEUS Consumer DurablesUS Market
7D-6.0%2.1%-0.5%
1Y7.6%23.6%13.7%

Return vs Industry: LOVE underperformed the US Consumer Durables industry which returned 23.6% over the past year.

Return vs Market: LOVE underperformed the US Market which returned 13.7% over the past year.

Price Volatility

Is LOVE's price volatile compared to industry and market?
LOVE volatility
LOVE Average Weekly Movement11.1%
Consumer Durables Industry Average Movement6.5%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: LOVE is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: LOVE's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
1995574Shawn Nelsonhttps://www.lovesac.com

The Lovesac Company designs, manufactures, and sells furniture. It offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and accessories comprising drink holders, foot sac blankets, decorative pillows, fitted seat tables, and ottomans. As of January 31, 2021, the Company operated 108 showrooms.

Lovesac Fundamentals Summary

How do Lovesac's earnings and revenue compare to its market cap?
LOVE fundamental statistics
Market CapUS$795.63m
Earnings (TTM)US$34.96m
Revenue (TTM)US$431.72m

22.8x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LOVE income statement (TTM)
RevenueUS$431.72m
Cost of RevenueUS$192.87m
Gross ProfitUS$238.85m
ExpensesUS$203.89m
EarningsUS$34.96m

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.31
Gross Margin55.33%
Net Profit Margin8.10%
Debt/Equity Ratio0%

How did LOVE perform over the long term?

See historical performance and comparison

Valuation

Is Lovesac undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LOVE ($52.61) is trading below our estimate of fair value ($154.61)

Significantly Below Fair Value: LOVE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LOVE is poor value based on its PE Ratio (22.8x) compared to the US Consumer Durables industry average (9.6x).

PE vs Market: LOVE is poor value based on its PE Ratio (22.8x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: LOVE is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: LOVE is overvalued based on its PB Ratio (6.6x) compared to the US Consumer Durables industry average (1.9x).


Future Growth

How is Lovesac forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

36.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOVE's forecast earnings growth (36.4% per year) is above the savings rate (2%).

Earnings vs Market: LOVE's earnings (36.4% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LOVE's revenue (17.2% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: LOVE's revenue (17.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LOVE's Return on Equity is forecast to be high in 3 years time (21.5%)


Past Performance

How has Lovesac performed over the past 5 years?

44.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LOVE has a high level of non-cash earnings.

Growing Profit Margin: LOVE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LOVE has become profitable over the past 5 years, growing earnings by 44.3% per year.

Accelerating Growth: LOVE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LOVE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Durables industry (74.2%).


Return on Equity

High ROE: LOVE's Return on Equity (29%) is considered high.


Financial Health

How is Lovesac's financial position?


Financial Position Analysis

Short Term Liabilities: LOVE's short term assets ($163.6M) exceed its short term liabilities ($81.6M).

Long Term Liabilities: LOVE's short term assets ($163.6M) exceed its long term liabilities ($90.7M).


Debt to Equity History and Analysis

Debt Level: LOVE is debt free.

Reducing Debt: LOVE has no debt compared to 5 years ago when its debt to equity ratio was 54.7%.

Debt Coverage: LOVE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LOVE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Lovesac current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LOVE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LOVE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LOVE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LOVE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LOVE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Shawn Nelson (44 yo)

24yrs

Tenure

US$2,027,626

Compensation

Mr. Shawn David Nelson founded The Lovesac Company in 1998 and has been its Chief Executive Officer and Director since 2017. Mr. Nelson is the lead designer of its patented products and directly oversees d...


CEO Compensation Analysis

Compensation vs Market: Shawn's total compensation ($USD2.03M) is about average for companies of similar size in the US market ($USD2.31M).

Compensation vs Earnings: Shawn's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LOVE's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: LOVE's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LOVE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

Company Information

The Lovesac Company's employee growth, exchange listings and data sources


Key Information

  • Name: The Lovesac Company
  • Ticker: LOVE
  • Exchange: NasdaqGM
  • Founded: 1995
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Implied Market Cap: US$795.625m
  • Shares outstanding: 15.12m
  • Website: https://www.lovesac.com

Number of Employees


Location

  • The Lovesac Company
  • Two Landmark Square
  • Suite 300
  • Stamford
  • Connecticut
  • 6901
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:16
End of Day Share Price2022/01/14 00:00
Earnings2021/10/31
Annual Earnings2021/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.